Financial Performance - For the fiscal year ending March 31, 2023, the company reported revenues of HKD 84,833,000, a significant increase from HKD 35,120,000 in the previous year, representing a growth of 141.5%[6] - The company recorded a loss before tax of HKD 123,327,000, an improvement compared to a loss of HKD 567,039,000 in the prior year, indicating a reduction in losses by approximately 78%[6] - Total assets decreased to HKD 93,635,000 from HKD 433,922,000 in the previous year, reflecting a decline of 78.4%[7] - The company reported a loss of approximately HKD 123.3 million for the year ended March 31, 2023, a reduction of about 78.3% compared to a loss of approximately HKD 567.8 million for the same period last year, mainly due to a decrease in financial asset impairment losses[107] - Personnel costs for the reporting period were approximately HKD 26.7 million, an increase of about 27.8% from approximately HKD 20.9 million for the same period last year, primarily due to an increase in the number of employees[99] - Other operating expenses amounted to approximately HKD 20.2 million, a slight increase of about 2.1% from approximately HKD 19.7 million for the same period last year[102] - Financial asset impairment losses were approximately HKD 77.8 million, a significant decrease of about HKD 426.5 million compared to approximately HKD 504.3 million for the same period last year[103] - The company's other income was approximately HKD 0.6 million, an increase of about 460.9% from approximately HKD 0.1 million for the same period last year, mainly due to government subsidies recognized as financial assistance[105] - Financial costs for the reporting period were approximately HKD 33.6 million, an increase of about 4.9% from approximately HKD 32.1 million for the same period last year, primarily due to increased borrowing and financing activities[106] Business Strategy and Operations - The company successfully expanded its leasing business in China, establishing a stronger presence in multiple locations, which helped diversify business risks and explore new markets[9] - The company aims to continue expanding its leasing business and recovering overdue receivables while exploring opportunities outside the leasing industry to enhance synergies within its ecosystem[10] - The overall economic environment in China is improving, which the company believes will support sustainable growth and value creation for shareholders[10] - The company is focused on managing and recovering overdue financing lease receivables through various strategies, including litigation and debt restructuring[141] - The company believes that its financing leasing business will improve as the overall economic environment gradually recovers[141] - The company is actively reviewing and processing loan applications to expand its financing business in the Greater Bay Area[141] - The company aims to enhance synergies within its ecosystem to further develop its leasing services and expand its business outside Hubei Province[141] Corporate Governance - Liu Xiaofeng appointed as a non-executive director on April 28, 2023, with extensive experience in capital markets and asset management[14] - The company has complied with the corporate governance code principles as per the Hong Kong Stock Exchange, with the board currently meeting the minimum requirements for independent directors[30] - The board of directors has appointed Mr. Wu as an independent non-executive director effective April 28, 2023, enhancing governance and oversight[26] - The independent non-executive directors have confirmed their independence in accordance with the guidelines set out in the listing rules[32] - The company has a strong governance framework in place, adhering to the majority of best practices recommended by the corporate governance code[30] - The board is responsible for formulating corporate strategies and monitoring the overall operational and financial performance of the group[31] - The company has adopted a board diversity policy to enhance performance quality, considering factors like gender, age, and professional qualifications[49] - The company encourages continuous professional development for all directors to update their knowledge and skills[41] - The board has conducted meetings to discuss matters affecting the company's operations, ensuring timely and effective decision-making[31] - The board composition includes experienced individuals, contributing to the effective management of the company's affairs[31] Shareholder Information - The company did not recommend the payment of any final dividend for the year ending March 31, 2023[80] - As of March 31, 2023, the company had no distributable reserves for shareholders, consistent with the previous year[85] - The group reported that the top five customers accounted for approximately 12.9% of total revenue, down from 50.0% in the previous year, with the largest customer contributing about 5.7% of total revenue compared to 20.6% last year[87] - As of March 31, 2023, the total equity held by key executives and directors in the company amounts to 189,190,145 shares, representing 45.86% of the issued shares[162] - Huang Kai'en holds 400,000 shares, accounting for 0.1% of the issued shares, while Huang Yueyi and Huang Yiyi each hold 189,190,145 shares, representing 45.86%[162] Risk Management - The group faces increased credit risk due to the economic pressures on small and medium-sized enterprises in China, which may impact future business performance[117] - The group has no foreign exchange hedging policy in place to mitigate currency risks, particularly related to RMB and USD transactions[121] - The management continues to monitor liquidity risks to ensure sufficient cash reserves for short-term and long-term needs[122] - The company has a commitment to maintaining effective risk management and internal control systems, which were reviewed by an external independent internal audit service provider during the reporting period[66] Acquisitions and Disposals - The company completed the acquisition of 51% of Anhua Lida Risk Asset Management Co., Ltd. on August 25, 2021, which now operates as a non-wholly owned subsidiary[125] - The company completed the acquisition of 51% of Ultimate Harvest Global Limited on March 4, 2022, which primarily provides automotive leasing services in China[129] - The company sold its entire stake in融眾資本集團有限公司, including 104,422 shares and a debt of HKD 177,925,850.34, for a total consideration of HKD 100,000, completed on March 17, 2023[131] - The sale of Rongzhong Capital Group and its subsidiaries was completed on March 17, 2023, for a cash consideration of HKD 100,000, significantly improving the company's financial position[145] - The sale resulted in a gain of approximately HKD 715,120,000, which is treated as a capital injection from shareholders[150] - The company no longer controls Rongzhong Capital and its financial performance will not be consolidated in the group's financial statements[150] Compliance and Legal Matters - The company has complied with the legal and regulatory requirements for financing lease operations as mandated by the Ministry of Commerce[160] - The company is required to submit audited financial reports by April 30 each year, ensuring transparency and adherence to statutory requirements[160] - The board of directors has reached a consensus with auditors regarding the resolution of issues related to the disclaimer of opinion[155] - The company has implemented measures to ensure the comparability of financial data presented in the financial statements[155] Non-Competition Agreements - The company entered into non-competition agreements with various parties to protect against potential competition from shareholders[200] - The agreements include irrevocable commitments from the parties involved to refrain from competing during the defined period[200] - The non-competition commitments apply to both the company and its closely related entities[200] - The agreements aim to prevent any competitive actions that could harm the company's market position[200] - The company continues to monitor the effectiveness of these agreements in protecting its business interests[200]
融众金融(03963) - 2023 - 年度财报